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A Job of 1,000 VCRs Manufactured by K Corp

Question 12

Essay

A job of 1,000 VCRs manufactured by K Corp. contains defective parts. The cost incurred in manufacturing these defective units is $140,000. K Corp. can sell these units as scrap materials for $45 per unit or repair all 1,000 units at a total cost of $70,000. If the units are repaired, they can be sold at the normal price of $200 per unit.
-What will be the total amount of the loss incurred by K Corp. on the sale of these units if they are sold for scrap at $45 per unit?
$____________ loss

Correct Answer:

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($45 × 1,0...

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